DPS Resources Bhd has added another piece of land to accommodate its future development plans in Melaka.
This follows the inking of a sale and purchase agreement by its wholly-owned subsidiary Shantawood Sdn Bhd with Bao Long Marketing Sdn Bhd for the proposed acquisition of a piece of freehold land measuring 2.85 hectares for RM6.1 mil.
Prior to the proposed acquisition of freehold land, DPS has already been actively engaged with different parties to build up its land bank in Melaka.
“The acquisition of the freehold land in Mukim Tanjong Minyak, Melaka is in line with the group’s strategy to build up our land bank and expand our property development business in Melaka through the acquisition of strategic lands,” commented DPS’ managing director Edward Sow Yuen Seng.
“We’re excited with the opportunities and development plans that the group has in Melaka over the next five years.”
To re-cap, Shantawood has in the middle of this month signed a joint venture agreement with Rembia Properties Development Sdn Bhd for the development of a mixed property project with a gross development value (GDV) of RM150 mil in Melaka.
According to Sow, the latest proposed acquisition of the freehold land suits the group in terms of its valuation, potential development in the future, and location that is adjacent to its existing land.
“With the strong potential in Melaka’s property market, we are optimistic that this proposed acquisition will put us in a good position to create economic value and contribute to the group’s future earnings,” Sow pointed out.
“In addition, the land is strategically located in matured Mukim Tanjong Minyak area with the main road frontage, thus making it ideal for mixed residential development.”
In line with the group’s vision to expand its property development business in Melaka, DPS also announced the appointment of Bong Wee Khong as its new chief operating officer (COO).
Bong has vast experience in audit, accounts, corporate finance and property development. His previous five-year stint as financial controller and later COO of a Melaka-based property developer suits the group’s strategic expansion plan in Melaka.
DPS is looking forward to explore the proposed acquisitions and planned joint ventures in the property development in Melaka, Negeri Sembilan and Selangor following a commendable results for its financial year ended March 31, 2021 despite the COVID-19 pandemic.
The group’s latest financial results for its 4Q 3/2021surged to RM4.1 mil from RM100,000 a year ago, driven by the company’s push in its property development in Melaka.
At the close of yesterday’s trading, DPS was unchanged at 12 sen with 5.73 million shares traded, thus valuing the company at RM85 mil. – May 26, 2021
